the state of venture investing - sdvg.org€¦ · the state of venture investing january 24, 2013...
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![Page 1: The State of Venture Investing - sdvg.org€¦ · The State of Venture Investing January 24, 2013 Josh Green Mohr Davidow Ventures . ... Source: 2012 NVCA Yearbook, prepared by Thomson](https://reader031.vdocuments.mx/reader031/viewer/2022022513/5af058627f8b9ac2468de9a1/html5/thumbnails/1.jpg)
The State of Venture Investing
January 24, 2013
Josh Green
Mohr Davidow Ventures
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The Number of US VC Firms Has Peaked .. Thankfully
At Year End
# Active Firms
Capital Managed
1970 28 $1B 1980 87 $4B 1990 100 $28B
2000 1,035 $224B 2011 526 $197B
Source: 2012 NVCA Yearbook, prepared by Thomson Reuters, figure 1.04
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VC Fundraising Has Slowed Down – New commitments continue below the company investment rate
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$B 12 18 31 58 107 38 4 11 19 31 32 31 26 16 14 19 21
0
20
40
60
80
100
120
Source: Thomson Reuters/NVCA
Does not include Corporate Venture groups.
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$0
$20
$40
$60
$80
$100
$12019
88
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$ B
illio
n In
vest
ed
VC Investment Peaked in 2000; Industry is Smaller Now; $27B in 2012
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
$105b
$32b
$27b
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The Vast Bulk of the Capital Goes to Existing Managers Raising a Follow-On Fund
2005 2006 2007 2008 2009 2010 2011 2012$B 1st,Only 3.8 2.4 3.0 2.2 1.1 1.6 1.8 1.6$B Follow On 28.4 30.2 27.8 23.4 15.1 12.1 17.0 18.9
0.05.0
10.015.020.025.030.035.0
$B R
aise
d by
Firs
t-Ti
me
Man
ager
s vs
. Fo
llow
-On
Source: Thomson Reuters/National Venture Capital Association. Note: sole funds are included in first funds
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Venture Capitalists Continue To Invest in Promising Companies –
1,000-1,300 Considered Healthy; Life Sci particularly slow now
-
500
1,000
1,500
2,000
2,500
3,000
3,500
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012# Cos 1436 2471 3394 1235 851 774 970 1082 1278 1418 1313 831 1087 1312 1163
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
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The Number of First Fundings of Life Sciences Companies is Way Down…
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012# LS FF 152 192 203 167 192 170 177 169 188 207 274 271 257 171 188 181 135
0
50
100
150
200
250
300
Note: For this chart, biotech, pharmaceuticals, med devices, and therapeutics are included. HC services is not.
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
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Clean Technology has grown dramatically; was > 15% of all US VC investment; softer now
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$B CT 105.22 40.976 22.141 19.677 23.235 23.605 27.588 31.883 29.921 20.381 23.315 29.463 26.525% of AllVC 0.6% 1.0% 1.6% 1.2% 1.9% 2.7% 6.5% 6.6% 14.3% 12.4% 17.6% 15.5% 12.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
20
40
60
80
100
120
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
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IPO Levels Overall Below What is Needed; 2012 Numbers Driven by Facebook & friends ($16.0B)
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$Offer B 5.8 4.2 24.0 27.4 4.1 2.3 2.0 10.3 5.1 7.1 12.4 0.8 2.0 7.6 10.7 21.5Count 141 79 280 238 37 24 26 83 59 68 92 7 13 68 51 49
0
50
100
150
200
250
300
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Num
ber o
f IPO
s
Offe
r $B
Source: Thomson Reuters/National Venture Capital Association
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M&A Exits for Venture-Backed Companies are Improving – But There is a Long Way to Go!
Source: Thomson Reuters/National Venture Capital Association
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $B 7.9 8.3 39.6 81.8 25.6 12.5 9.2 30.0 20.0 25.4 30.7 16.2 12.3 17.7 24.1 21.5
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0
$ B
illio
n
Disclosed Acquisition Price Paid $B
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Venture Exit Counts- IPOs and M&A by Year
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012#M&A 97 116 143 189 227 380 384 363 323 402 443 485 488 416 351 521 488 437#IPO 202 270 141 79 280 238 37 24 26 83 59 68 92 7 13 68 51 49
0100200300400500600700
Num
ber o
f Iss
ues
#M&A#IPO
Source: Thomson Reuters/National Venture Capital Association
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12
Venture investment in San Diego was up in 2012 – over 4% of national …
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$M Inv 485 516 669 1,429 2,302 1,579 997 826 1,198 1,205 1,224 1,851 1,210 949 897 927 1,117% of National 4.3% 3.4% 3.1% 2.6% 2.2% 3.9% 4.5% 4.2% 5.2% 5.1% 4.4% 5.8% 4.0% 4.7% 3.8% 3.1% 4.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
$0
$500
$1,000
$1,500
$2,000
$2,500
$ M
illi
on
s In
to S
an D
ieg
o P
ort
Co
s
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
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Who’s Investing in San Diego Companies? 25% comes from SiValley, 15% from NYC
Si Valley25%
Unk/Misc18%NY Metro
15%
Foreign12%
MidWest8%
NewEng7%
Philly5%
San Diego4%
Other6%
2012 Investment in San Diego Companies
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
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70% of 2012 Investment Dollars Went to Biotech & Clean Tech
Bio54%
Ind/Energy17%
Software14%
Med Dev10%
IT Svcs2%
Consumer1% Networks
1%
Media/Entert1%
Other0%
San Diego 2012 Investment
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
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San Diego First Fundings Have Been Soft Recently – Time to Refill the Pipeline!
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10
20
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50
60
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80
90
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012# Cos 40 65 85 41 30 32 32 41 34 42 38 26 25 23 16
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
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www.nvca.org
nvcaccess.nvca.org
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Public Policy and The Venture Industry The road ahead…
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The Washington Environment
• Emboldened White House • Acrimonious environment: red/blue, right/left, tax
brackets • Fiscal matters are paramount • Congressional turnover • Overwhelmed regulators e.g. SEC • Tax reform could be a free for all
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Recent Battles
• J.O.B.S. Act of 2012 • FDA reform • Clean technology science funding/supportive
policies (ARPA-E support) • Internet regulation